^{Source: CNBC}

A $5.6 Billion Bet with a Slow Payoff

Back in 2021, Coca-Cola completed its full acquisition of BodyArmor for a staggering $5.6 billion, aiming to turn the rising brand into the #1 global sports drink, toppling long-time market leader Gatorade, owned by PepsiCo. The deal was the largest brand acquisition in Coca-Cola’s history.

Fast forward to 2025, and that dream remains unfulfilled.

BodyArmor continues to trail behind Gatorade and its Coca-Cola sibling Powerade, held back by branding confusion, a rapidly evolving market, and sluggish sales performance. The situation got serious enough that in April 2023, Coca-Cola wrote down $760 million on the brand’s value—a sign that the expected growth hadn’t materialized.

Howard Telford, head of soft drinks at Euromonitor, summed it up best: “BodyArmor is a little lost in the middle.”

BodyArmor's Makeover: A Full Brand Rebirth

Now, Coca-Cola is hitting the reset button.

On Thursday, BodyArmor launched what it calls its most significant brand overhaul to date:

• New packaging and a refined logo
• A multimillion-dollar marketing campaign featuring top-tier athletes like NFL quarterback Joe Burrow and WNBA star Sabrina Ionescu
• The brand's biggest visibility push yet, with its ads premiering during the NHL playoffs this weekend

Chief Marketing Officer Tom Gargiulo admits that BodyArmor still lacks widespread recognition:

“One of our biggest barriers is awareness. Most people still don’t know who we are or what makes us different.”

With this relaunch, Coca-Cola is hoping to ignite exponential growth and reposition BodyArmor as the go-to beverage for performance hydration.

From Startup Star to Corporate Struggles

Launched in 2011, BodyArmor entered the market touting its “better-for-you” ingredients like coconut water, natural flavors, and no artificial sweeteners. It quickly gained attention thanks to early investor Kobe Bryant, who acquired a 10% stake in 2013 and became the face of the brand.

By 2018, Coca-Cola had purchased a 15% minority stake, signaling strong interest. When they acquired it fully in 2021, the move was expected to reshape the $30 billion global sports drink market.

But integrating BodyArmor into a massive corporate structure wasn’t easy. Coca-Cola CEO James Quincey told the Wall Street Journal in 2023 that the process came with more “hiccups” than expected:

“There was certainly more than we would have liked or expected. And now we have to kind of reset ourselves.”

Competing in a Crowded Hydration Market

Today’s hydration market looks very different from a decade ago. No longer just about sports and athletic performance, the category has exploded with new brands appealing to wellness-conscious Gen Z and millennials.

Market Share Breakdown (2024):

• Gatorade: ~62%
• Powerade: ~14.5%
• BodyArmor: ~12%

While BodyArmor has gained ground, it’s still lagging. Ironically, Coca-Cola had hoped BodyArmor would already be in second place, if not challenging for the top spot.

Adding to the pressure are high-profile newcomers:

• Prime Hydration by YouTuber Logan Paul (whose initial meteoric rise has since fizzled)
• Unwell Hydration by influencer Alex Cooper
• Local Weather and Leisure, niche brands with cult followings
• Gatorade Fast Twitch, endorsed by sports legends like Leo Messi and Steph Curry

“Hydration is no longer just about athletes,” says Telford. “Consumers now view these drinks as everyday health beverages.”

What’s Actually Working for BodyArmor?

Despite its challenges, BodyArmor has seen bright spots:

• Zero Sugar line and rapid rehydration drinks (akin to Electrolit) have each pulled in $100 million in revenue within just 12 months.
• The brand has expanded its offerings with alkaline water, hydration powders, and low-calorie variants, aligning with fast-growing consumer preferences.

CEO Federico Muyshondt acknowledges the tough transition:

“Coca-Cola is a company, but also a system. There’s a big difference between being on the outside versus being fully integrated.”

Still, Muyshondt is optimistic, welcoming the competition:

“More players means the category is growing. We’re laser-focused on becoming the #1 sports drink worldwide.”

What's Next? Can BodyArmor Win?

Coca-Cola has the distribution power, capital, and marketing muscle to take BodyArmor to new heights—but it faces a delicate balancing act. It must clearly differentiate BodyArmor from its own Powerade, avoid brand cannibalization, and stay agile in a market that’s evolving at lightning speed.

With younger audiences demanding more functional beverages, clean ingredients, and influencer credibility, BodyArmor’s future will depend not just on rebranding—but on truly connecting with the next generation of consumers.

One thing’s for sure: the race to dominate the sports drink market is far from over, and Coca-Cola’s $5.6 billion gamble is just entering its next chapter.

‍